Compute for the total Factory overhead cost of Department H if the company uses the direct method and the producing departments using the following bases: Department H, 100,000 direct labor hours; and Department G, 195,000 direct labor hours.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Compute for the total Factory overhead cost of Department H if the company uses the direct method and the producing departments using the following bases: Department H, 100,000 direct labor hours; and Department G, 195,000 direct labor hours. 

The Madalilangto Ink Company prepared the following table for the year 2019:
Production
Service Departments
Departments
H
U
V
w
770,000
120,500
420,000
170,000
15,000
23,000
9,500
7,000
7,500
Rent
250,000
100,000
350,000
157,500
61,000
14,500
30,000
7,000
Repairs
Fuel
6,000
Indirect Labor
145,000
100,000
97,500
Indirect
56,500
127,000
94,500
60,000
Materials
Heat and Light
6,000
151,200
71,300
50,500
Following is the result of the factory survey regarding service departments:
[A] Department U services G, V, and W in the ratio of 2:1:1, respectively;
[B] Department services Department H, G, U, and w in the ratio of 4:3:2:1, respectively;
[C] Department W services Department H and G in the ratio of 3:1, respectively.
202,500
94,000
60,000
9,000
7,500
2,000
3,000
Depreciation
Miscellaneous
1,500
500
500
500
Transcribed Image Text:The Madalilangto Ink Company prepared the following table for the year 2019: Production Service Departments Departments H U V w 770,000 120,500 420,000 170,000 15,000 23,000 9,500 7,000 7,500 Rent 250,000 100,000 350,000 157,500 61,000 14,500 30,000 7,000 Repairs Fuel 6,000 Indirect Labor 145,000 100,000 97,500 Indirect 56,500 127,000 94,500 60,000 Materials Heat and Light 6,000 151,200 71,300 50,500 Following is the result of the factory survey regarding service departments: [A] Department U services G, V, and W in the ratio of 2:1:1, respectively; [B] Department services Department H, G, U, and w in the ratio of 4:3:2:1, respectively; [C] Department W services Department H and G in the ratio of 3:1, respectively. 202,500 94,000 60,000 9,000 7,500 2,000 3,000 Depreciation Miscellaneous 1,500 500 500 500
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